Small Cap Stock Below Rs 7 Announces Rs 50 Cr Fundraising Via Rights Issue

A small-cap firm in the financial services industry is Toyam Sports Ltd. The sole corporation that operates in diverse sports production, promotion, and management is Toyam Sports Limited (TSL), which is listed on Indian bourses. The corporation approved the issuance of partially paid-up equity shares via a rights issue on Wednesday, with a total fundraising of Rs 50 Cr.

The company said in a stock exchange filing on Wednesday that its Board of Directors approved "Fund raising for an aggregate amount not exceeding Rs. 50 Crore (Rupees Fifty Crores), through issuing Partly paid-up Equity shares by way of Rights issue to the eligible equity shareholders of the Company as on Record date (to be notified subsequently within due course)."

Toyam Sports has appointed various intermediaries i.e., Merchant Bankers, Legal Advisor, Advisors, Bankers, and Registrar to the rights issue.

The Board also approved to increase the authorized share capital of the company to Rs. 110 crores, to accommodate the present and future fundraising, if any, and consequent alteration in Capital Clause of the Memorandum of Association of the company, as per a regulatory filing.

The Board also talked over the resignation letter that Non-Executive Independent Director Purvesh Shelatkar filed. The Board asked him to stay because of his significant contribution. As a result, Mr. Purvesh Shelatkar retracted his resignation and will keep up his position as a non-executive Independent Director.

In the June 2023 quarter, the company's net sales jumped by 15.96% to Rs. 3.04 crore on a consolidated basis from Rs. 2.62 crore in the corresponding quarter in the previous year. It reported a net loss of Rs. 0.47 crore in the first quarter of FY24, down 416.18% from Rs. 0.15 crore in the first quarter of FY23.

On Thursday, the shares of Toyam Sports were trading 2.12% lower at Rs 6. The scrip made a 52-week-high of Rs 20.33 on (21/12/2022) and a 52-week-low of Rs 5.72 on (03/10/2023).